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Making

productivity

a priority

By Andrew Harding, FCMA, CGMA

ne of the things that makes our finding that we also see in our Mind the suggestions for how the UK’s productivity
profession fulfilling is that we Skills Gap surveys. They also highlighted could be improved. Some are for
can use our training and skills poor management as a problem. policymakers — we are proposing that the
to drive real business progress Members told us that new technology UK establishes a productivity
Oand innovation. Take for is the most impactful factor behind commission, similar to those that have
example, productivity. This idea of improved productivity, followed by hybrid been created in Australia and South Africa.
monitoring and driving business working and accumulation of knowledge, But others are actions we can take as
performance has been central to our work and sharing of ideas and know-how. You business finance leaders, such as
since our foundation in 1919. In late 2021, no doubt recognise these as core improving management practices by
the Association published a report, components of your work as a finding better ways to set the right targets
Tackling the UK Productivity Puzzle, management accountant. and track outcomes, for example. How
looking at how government and finance I often talk about the importance of companies motivate employees is key to
professionals can play leading roles in setting the right targets for the right areas boosting productivity, with skilful use of
driving productivity, an ongoing issue for — I think this simple mantra has KPIs and budgeting a central part of this.
the UK and elsewhere. significant power. We attend to things that If we are to deliver a lasting economic
Within the G7 group of nations, the UK are measured, so we need to be confident recovery, ensure greater business
PHOTO BY STEVE FORREST/STEVE FORREST PHOTOGRAPHY
lags behind France, Germany, and the US that those areas are the right ones to focus resilience, and drive sustainable growth in
in productivity. The UK also has what is on. This is where our work on integrated the next 18 months, we must outline a
known as the “productivity puzzle” to thinking and integrated reporting (IR) longer-term strategy to tackle structural
contend with. That means, in short, that comes into its own. IR explores where the issues that risk holding the UK back, such
its productivity is not growing at the rate it value in a business is generated, going as our faltering productivity and widening
did before the financial crash in 2008. This beyond the hard numbers to unearth skills gap. As management accountants,
sounds like an esoteric economic issue, other factors that contribute to its success we should make it a priority to measure,
but as productivity is one of the most and viability. As you consider your own report, and drive strategic options on
important factors in determining productivity questions, why not look at productivity.
standards of living, it has consequences the picture through the lens of IR to find
that everyone feels. new insights? Andrew Harding, FCMA, CGMA, is chief
When we surveyed UK and Ireland We recognise that solving the executive–Management Accounting at
members for their opinions on the key productivity puzzle has become even the Association of International
causes of sluggish productivity, they more critical as we wait to see the Certified Professional Accountants,
pointed to areas such as available skills long-term impact of the pandemic in this representing AICPA & CIMA.
not fitting what the market needs, a area. Meantime, we have made
6 I FM MAGAZINE I February 2022